AMD Surges 13% to Close at $509 After Oppenheimer Upgrade and Google Cloud EPYC Win

Advanced Micro Devices shares jumped 13.36% to close at $509.01 on Monday, adding nearly $100 billion in market capitalization in a single session, driven by a bullish analyst upgrade and a new partnership with Google Cloud. The gains came two sessions after CEO Lisa Su publicly called the market short-sighted following a 17% single-day drop, and left AMD still down roughly 16% over the trailing month.

Oppenheimer analyst Rick Schafer upgraded AMD to Outperform from Perform and set a $600 price target after AMD's earnings and discussions with the company's CFO. Schafer projects AMD's data center segment will grow 135% next year to represent approximately 85% of total sales, with GPU revenue from the DCAI segment set to overtake EPYC server CPU revenue even as EPYC sales are forecast to more than double. Oppenheimer models data center capacity demands of roughly 3 gigawatts in 2027 and 4 gigawatts in 2028, and sees favorable pricing trends as AMD negotiates next-generation contracts as an incumbent. Near-term AI GPU demand is expected to be led by OpenAI and Meta through the first quarter, with Anthropic ramping in late Q1, and Oracle, Microsoft and Humain contributing materially through the first half of 2028. AMD's GPU roadmap calls for the MI500 series in 2027 and the MI600 series in 2028.

Google also announced it will pair AMD's fifth-generation EPYC processors with its new TPU 8tx system, one of two new specialized configurations expanding Google's eighth-generation TPU lineup to four total variants. The TPU 8tx is designed for secure, confidential computing targeting government agencies and regulated industries, using AMD CPUs to enable chip-level data encryption. A second new variant, the TPU 8i Max, combines two TPU chips in a single package for high-memory AI workloads and does not involve AMD processors. Both systems are expected to become available in 2027.

AMD's quarterly results underpinned the bullish sentiment: the company reported Q3 revenue of $13.38 billion, up 45% year over year, with data center revenue surging 97% to $8.5 billion. Analysts now project AMD could reach approximately $94 billion in annual revenue by 2027, approaching the $100 billion threshold. AMD's stock move was amplified by a simultaneous 5% decline in Nvidia shares after Nvidia's board opened an investigation into CEO Jensen Huang's reported relationship with a woman suspected of Chinese espionage, prompting some investors to rotate toward AMD and Broadcom. Cathie Wood's ARK Invest added to its AMD position during last week's sell-off, purchasing nearly $81 million across AMD, Nvidia and Alphabet on Thursday before adding more on Friday.